GOOGL drops amid investor worries over 2027 earnings estimates and rising capital expenditures, offsetting its 9% 2026 gain.
Alphabet shares extended their June decline on Thursday, pressured by concerns over 2027 earnings projections and a surge in capital spending. The stock has retreated since mid-May despite a 9% gain year-to-date in 2026.
The pullback follows a post-earnings rally in April after the company reported Q1 results. Analysts highlight that elevated spending, particularly in AI and infrastructure, is weighing on investor sentiment despite broader market gains driven by AI enthusiasm.
Equities have advanced in 2026, supported by AI-driven optimism, though geopolitical tensions in the Middle East remain a headwind.